UK & EU suing Google for €25 billion over ad practices
UK businesses are estimated to have lost £7 billion as a result of Google's practices
Alphabet unit Google is facing two lawsuits in Europe over its digital advertising practices, which could see the search giant paying up to €25 billion (£19.5 billion) in damages.
Antitrust authorities have been investigating Google's adtech, following complaints from digital publishers.
Google is a major player in the online ads market, with massive influence. However, that power has led to accusations of anticompetitive practices that have given the company a stranglehold over press publishers and other businesses in the adtech ecosystem.
The European Commission launched an inquiry last year to see if Google favours its own online display advertising technology services over those of competitors, advertisers and online publishers.
In the coming weeks, separate legal actions will be brought in the UK and the Netherlands on behalf of publishers demanding compensation.
Damien Geradin of the Belgian legal firm Geradin Partners, which is involved in the EU case, said, "Publishers, including local and national news media who play a vital role in our society, have long been harmed by Google's anticompetitive conduct."
He said it was time for Google to accept responsibility for its actions and pays back the damages it has done to this "vital" sector.
"That is why today we are announcing these actions across two jurisdictions to obtain compensation for EU and UK publishers."
UK law firm Humphries Kerstetter has said it intends to file a lawsuit with the UK Competition Appeal Tribunal over the next month.
The British lawsuit aims to secure compensation for all website owners that run banner ads. If successful a broad range of organisations - from big media outlets to small and medium-sized businesses who create their own internet content - could be eligible for a payout from Google.
Toby Starr, of Humphries Kerstetter, said it was important to bring the lawsuit because there is a chance the tech giant may alter its practices as a consequence.
He said the lawsuit was on behalf of victims of Google's anti-competitive behaviour in the ad tech industry, who the law firm estimates have collectively lost £7 billion.
Both cases are supported by privately-owned UK litigation finance firm Harbour. The firm pays legal fees up front and helps manage the costs and risks of litigation, in exchange for an agreed-upon share of the amount recovered if the legal action is successful.
The news comes a year after Google was fined €220 million by France's competition regulators for a series of anti-competitive practices, including abusing its dominant position in the market to favour its own ad servers for publishers and app developers.
A few more significant antitrust enforcement proceedings against Google in Europe have occurred in the prior years, including one against Google Shopping in 2017, Android in 2018, AdSense in 2019 and its own Android voice assistant last year.
Google has rejected the accusations. A spokesperson said the actions were "opportunistic" and said the company collaborates with publishers all around Europe.
"These services adapt and evolve in partnership with those same publishers. This lawsuit is speculative and opportunistic. When we receive the complaint, we'll fight it vigorously," they added.